Metabolon May Launch IPO in Next Couple of Months

Metabolon Inc., a medical technology firm that tests how diseases and drugs affect the body, is working on an initial public offering that could launch in the next couple of months, people familiar with the matter said.

The Durham, N.C.-based company is working with banks including Barclays PLC and Piper Jaffray Cos. on the IPO, the people familiar said.

The company is already confidentially filed for an IPO with the Securities and Exchange Commission under the JOBS Act and is aiming to make its filing public and potentially complete the deal in the next couple of months, the people added.

The IPO comes on the heels of an announcement the company made in March that it had partnered with Human Longevity Inc., started by genomics pioneer Craig Venter. Mr. Venter’s new company plans to collect genetic data from thousands of people and use it to discover new treatments. Metabolon agreed to provide biochemical testing for Human Longevity. Mr. Venter serves as a scientific adviser to Metabolon.

Metabolon helps companies and researchers test how products or drugs affect the body’s metabolism. It has also developed diagnostic tests for cancer and for obesity-related diseases, such as diabetes.

The company generated about $25 million in revenue last year, people familiar with the IPO planning said.

The health-care IPO market got off to a sizzling start in 2014, with a record number of deals launching through mid-April, according to Dealogic. But the sector has been challenged of late, as many high-flying IPOs have had their gains peeled back in a sharp correction. Of the eight healthcare IPOs so far in April, only one did not trade below its IPO price at some point during its first day of trading, according to Syndicate Pro LLC, an IPO data and advisory service.

The JOBS Act, enacted in April 2012, grants certain perks to companies with less than $1 billion in revenue. They incude relaxed accounting standards and financial reporting rules, including a provision that allows companies to file their initial IPO paperwork confidentially.

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